On April 13, 2026, the Dutchess County Legislature voted unanimously to pass a temporary and partial gas tax reduction at the pump. Effective June 1, 2026, sales tax on gasoline and highway diesel will be capped at $3/gallon. This means that the portion of the price of gas that exceeds $3 will not be taxed. For example: if gas is $3.50/gallon, then the first $3 will be taxed, but the remaining $.50 will not be. A deadline for this partial tax reduction was not included in the press release published by Dutchess County Chair Yvette Valdés Smith (D - Fishkill and Beacon). Legislator Michael Polasek (R-LaGrange) confirmed to ALBB that this gas tax reduction expires December 1, 2026..
In 2022, a similar temporary gas tax reduction was granted under a different administration. Introduced by then County Executive Marcus Molinaro (R), the cap was set to $2 and expired December 1, 2022, as per New York State Law. The law also requires that local taxes on gas be collected and cannot be eliminated, Molinaro explained in his press release at that time.
New York State sales tax on gas is 8.125% (it is 8.75% on New York State MCTD). Of that, each county decides which percentage or cents per gallon it takes from this tax. According to New York State’s March 2025 Local Sales and Use Tax Rates on Qualified Motor Fuel Highway Diesel Motor Fuel, and B20 Biodiesel, Dutchess County’s share is 3.75%.
Most counties use percentage, and most counties take 4% or above from that tax. Erie and Suffolk Counties, for instance, take 4.75%. Dutchess County takes below that at 3.75%. At this time, ALBB has not yet pursued why it is advantageous to residents of Dutchess County to take less than it is entitled from the state collected tax the county is required to collect.
Said Chair of the Dutchess County Legislature, Yvette Valdés Smith (D), who was the Minority Leader during the 2022 tax cap of $2 which was made in the name of fighting inflation: “As gasoline prices continue to surge as a consequence of the war in the Middle East, members of the Dutchess County Legislature are putting forward a resolution to cap the County's sales tax on gasoline and highway diesel at $3 per gallon. The proposal would prevent Dutchess County from collecting windfall tax revenue from residents who have seen gas prices rise more than 25% in recent weeks.”
The 2022 temporary gas tax cap was also voted on in April, taking effect June 1, and ending December 1 of that same year. That is because, as explained in former County Executive Molinaro’s press release: “New York State law states local sales tax enactments of this kind can take effect only on March, June, September or December 1st of any year and a certified copy of the local enacted resolution must be transmitted to the State at least 90 days prior to the effective date.”
After the Legislature met to vote to advance the gas tax reduction, Dutchess County Legislator Chair Yvette said: “The hardworking people of Dutchess County are hurting. The leadership of the Republican federal administration has been a disaster for everyone who’s not a millionaire or a billionaire. Whether it’s tariffs driving up the cost of goods, disastrous energy and environmental policies skyrocketing our energy and utility bills, or irresponsible and downright dangerous foreign policy like the War in Iran, which has caused our gas prices to go up more than a dollar in barely a month. This Legislature cannot allow the County to profit off of the people’s pain.”
Several Democrats were quoted in the 2026 press release, but no Republicans were quoted, nor was current County Executive Sue Serino (R). As a Senator, Serino consistently resisted taxes on gas and other driving mechanisms such as registrations and licenses. In fact, in 2021, Serino led a campaign to “Trash The Gas Tax.”
“Suspending the gas tax could save average New Yorkers hundreds of dollars each year,” said Senator Serino in 2021. “For too long, state government has turned a blind eye and put blame squarely on the shoulders of the federal government when it comes to increased costs on necessities like gas and home heating oil, but the reality is there are steps the state can take to provide immediate relief to hardworking New Yorkers who are being charged more just to get to work, take their children to school or daycare, or operate their businesses. It is far past time for the politicians in Albany to hear the concerns of their constituents and do what they can to provide relief now.”
Sounds like both sides of the isle are saying the same thing on the gas tax.
Back to present, County Legislator Emma Arnoff (D-LaGrange) stated of the 2026 temporary $3 gas cap: “Out-of-control gas prices are crushing constituents who are already struggling with rising electricity costs, rent, and interest rates.”
This morning, A Little Beacon Blog reached out to every Republican Legislator, as well as County Executive Sue Serino for comment. Michael Polasek (R-LaGrange), Minority Leader responded: “We supported the gas tax holiday as a starting point, because even modest relief matters to families who are struggling with rising costs. But we also believe we need to have serious discussions about more meaningful affordability measures that could provide greater impact for residents. That’s why it was disappointing that the proposal supporting a utility tax and surcharge holiday was not placed on this month’s agenda for consideration. At a time when families are feeling real pressure from energy costs, every reasonable idea deserves an open discussion.”
Sue Serino’s office responded with her quote: “I signed the gas tax cap legislation into law to provide residents with some relief from rising gas prices. While the County has little control over prices at the pump, we are working to do what we can to provide some relief to people who are feeling the effects of a volatile market.”
How This Will Work For Consumers At The Pump
In terms of how this will work for the consumer at the pump, ALBB asked County Executive Sue Serino’s office to expand upon how the sales tax will be lowered for the consumer, since New York State collects the gas sales tax, and then distributes to the counties.
“The State’s Department of Taxation & Finance will notify gas stations of the change and the stations will adjust the sales tax rate in their point of sale systems. It is important to remember that sales tax has several components – the State portion 4%, Dutchess County’s portion 3.75% and in our county, the MTA portion .375%, which total the full 8.125% rate. The State and MTA portion will remain.”
